Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Center Bancorp — Merger or Acquisition (January 2014)
19 slides from Connectone Bancorp's merger presentation, Jan 21, 2014
Slide 1: Center Bancorp and ConnectOne Combine to Create New Jersey's Premier Community Bank
Creating New Jersey’s Premier Community Bank Center Bancorp, Inc. and ConnectOne Bancorp, Inc. Combine to Create New Jersey’s Premier Community Bank January 21, 2014 NASDAQ: CNBC NASDAQ: CNOB
Slide 2: Forward Looking Statements
Creating New Jersey’s Premier Community Bank Forward Looking Statements 1 All non - historical statements in this investor presentation (including without limitation statements regarding the pro forma effect of the proposed transaction, annual cost savings, anticipated expense totals, the accretive
Slide 3: Additional Information for Stockholders
Creating New Jersey’s Premier Community Bank Additional Information for Stockholders 2 Additional Information and Where to Find It In connection with the proposed merger, Center will file with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S - 4 that will include a j
Slide 4: Participants
Creating New Jersey’s Premier Community Bank Participants 3 Frank Sorrentino III ConnectOne Chairman & CEO Anthony Weagley Center CEO William S. Burns ConnectOne CFO
Slide 5: Transaction Rationale
Creating New Jersey’s Premier Community Bank Transaction Rationale 4 Strategically Compelling Financially Attractive □ Combines two high performing New Jersey banks situated in some of the most affluent markets in the nation □ Creates a $3 billion institution with a significantly enhanced platform f
Slide 6: Transaction Overview
Creating New Jersey’s Premier Community Bank Transaction Overview 5 □ Fixed exchange ratio of 2.6 shares of Center common stock for each share of ConnectOne common stock □ 100% stock; no collars □ Implied transaction value of $242.9 million, or $45.60 per share (1) □ Represents a 14% premium to Conn
Slide 7: Company Introductions
Creating New Jersey’s Premier Community Bank Company Introductions 6 Corporate Overview (1) Headquarters Englewood Cliffs, NJ Branches 8 Assets ($mm) 1,242.7 Loans ($mm) 1,152.5 Deposits ($mm) 965.8 Corporate History Corporate History Corporate Overview (1) Headquarters Union, NJ Branches 16 Assets
Slide 8: Combines Two of New Jersey's Highest Performing Banks
Creating New Jersey’s Premier Community Bank $602.4 $729.7 $929.9 $1,242.7 $0.0 $300.0 $600.0 $900.0 $1,200.0 $1,500.0 FY 2010 FY 2011 FY 2012 FY 2013 $5.79 $6.60 $8.11 $8.56 $5.79 $6.72 $8.43 $9.16 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 FY 2010 FY 2011 FY 2012 FY 2013 Combines Two of New Jersey’s Hig
Slide 9: Enhances Scale in New Jersey's Best Markets
Creating New Jersey’s Premier Community Bank Rank Institution (ST) Number of Branches Deposits in Market ($mm) Market Share (%) 1 Valley National Bancorp (NJ) 94 4,281 11.7 2 Investors Bancorp Inc. (MHC) (NJ) 46 4,272 11.7 3 Provident Financial Services Inc. (NJ) 41 2,765 7.6 Pro Forma 24 2,105 5.8
Slide 10: Reciprocal Due Diligence and Credit Review
Creating New Jersey’s Premier Community Bank Reciprocal Due Diligence and Credit Review 9 □ Comprehensive due diligence process including core systems, legal and credit due diligence ¨ Identified efficient consolidation of data processing software □ Two tiered credit due diligence process completed
Slide 11: Planning and Investing for Continued Growth
Creating New Jersey’s Premier Community Bank Planning and Investing for Continued Growth 10 □ Strong, complementary institutions, well positioned for continued profitable growth □ Organizations have an established track record investing in and adapting their scalable infrastructure to strengthen com
Slide 12: Conservative Cost Savings
Creating New Jersey’s Premier Community Bank Conservative Cost Savings Estimated 11 Noninterest Expense Items Estimated Cost Savings ($mm) Compensation & Benefits $3.1 Occupancy & Equipment 0.7 Data Processing & Communications 0.9 Legal, Audit & Professional 1.2 Marketing 0.3 Other 0.8 Pre-tax Total
Slide 13: Financial Impact
Creating New Jersey’s Premier Community Bank Financial Impact 12 Attractive Returns Key Transaction and Model Assumptions 2015 EPS Impact Tangible Book Value Capital Internal Rate of Return □ 5.5% accretive to Center □ 1.7% dilutive to Center at close □ Earnback period of 2 years □ Pro forma capital
Slide 14: Pro Forma Company with Attractive Valuation
Creating New Jersey’s Premier Community Bank Financial Highlights (1) CNBC CNOB Pro Forma Peers (2) Total Assets ($mm) $1,678 $1,243 $3,160 $3,184 Total Gross Loans ($mm) 961 1,152 2,210 $2,103 Total Deposits ($mm) 1,342 966 2,416 $2,637 ROAA 1.2% 0.9% 1.3% 0.9% ROATE 13.2% 8.8% 14.2% 11.5% TCE Rati
Slide 15: Summary
Creating New Jersey’s Premier Community Bank Strategically compelling merger between two top performing NJ banks Highly attractive franchise with enhanced size, scale and geographic footprint in key New Jersey markets Combines Center’s robust core deposit base with ConnectOne’s strong organic loan g
Slide 16: Appendix
Creating New Jersey’s Premier Community Bank Appendix Creating New Jersey’s Premier Community Bank NASDAQ: CNBC NASDAQ: CNOB
Slide 17: Pro Forma Loan and Deposit Composition
Creating New Jersey’s Premier Community Bank Pro Forma Loan and Deposit Composition 16 Q4’ 13 Cost of Total Deposits : 0.50% Q4 ’13 Cost of Total Deposits : 0.54% Deposit Mix Loan Mix Total: Total: Total: Q4 ‘13 Yield on Total Loans: 4.32% Q4 ’13 Yield on Total Loans: 4.54% Total: Total: Total: Cons
Slide 18: Financial Highlights
Creating New Jersey’s Premier Community Bank Financial Highlights 17 Center Historical Financial Highlights ConnectOne Historical Financial Highlights Balance Sheet ($mm) FY 2010 FY 2011 FY 2012 FY 2013 CAGR Assets $1,207.4 $1,432.7 $1,629.8 $1,678.3 11.6% Loans 708.4 756.0 891.2 960.9 10.7% Deposit
Slide 19: Non-GAAP Reconciliation
Creating New Jersey’s Premier Community Bank For the quarter ended 12/31/2013 CNBC CNOB Net income $4,984 $2,850 Average stockholders’ equity $168,283 $129,447 Average tangible stockholders’ equity $151,452 $129,187 Return on average stockholders’ equity (1) 11.85% 8.73% Add: Average goodwill and ot
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